New Ideas and Thoughts
Laissez-Faire Economics
  • Middle class business leaders embraced this
  • Main prophet was Adam Smith
    • Asserted that a free market would help everyone, not just the rich and would produce more goods at a lower price.
  • Malthus on Population
    • Believed population would grow at faster rate than the food supply, which in turn had him urge families to have fewer children.
    • Early 1800s many people accepted this view.
    • Eventually was found to be doubtful.
  • As century progressed the living conditions for the western world slowly improved, and people began having fewer children.
    • Ricardo also believed in this.
The Utilitarians
  • Idea that the goal of society should be “the greatest happiness for the greatest number”
  • Idea of Bentham (utilitarianism)
    • Bentham believed all laws and/or actions should be tried by their “utility” (did they provide more happiness of pain?), individual freedom guaranteed happines, and that government should be involved only under certain circumstances.
  • John Mill
    • Same basic beliefs as Bentham, however; he did not believe unrestricted competition in free market was not always good.
      • Believed while middle class business and factory owners were able to increase their own happiness, therefore, the government should prevent them from doing it in a manner which could potentially harm workers by steping in and taking action to improve the difficult lives of the working class.
      • Also thought to give the vote to workers and women. This group could use their political power to win reforms, such as child labor to public health.
      • Most middle class people rejected Mill’s ideas at first, it was only till later in the 19th century where his ideas where becoming more accepted.
Emergence of Socialism
  • Socialism
    • People as a whole, not individuals, would own and operate the means of production.
      • The farms, factories, railways, and other large businesses that produced and distributed goods where people as a whole.
      • Grew out of the enlightenment faith in progress, belief in the basic goodness of human nature, and its concern for social justice.
      • Goal was to create a world where society would operate for the benefit of all members, versus just the wealthy.
    • Utopians
      • Early socialists attempted to create self-sufficient communities where all work was shared, and all property was owned in common.
      • Believed when there was no difference in rich or poor, there would be no fighting.
      • Name implies practical dreamers.
      • Thomas More’s ideal community.
    • Robert Owen
      • Poor Welsh boy
      • Became successful mill owner
      • Unlike most industrialists at the time, he refused to use child labor. He did this by campaigning for laws that limited child labor and encouraged the organization of unions.
      • Believed the conditions people lived in shaped their character.
        • To prove this, he set up a model village, his factory, in New Lanark, Scotland.
        • Built homes for workers, opened a school for children, and for the most part treated employees well.
        • He showed that an employer could offer decent living and working conditions and still run a profitable business.
      • By 1820s many people were visiting his factory to study his reforms.
The “Scientific Socialism” of Karl Marx
    • Marx condemned the ideas of utopians as unrealistic idealism.
  • “Scientific Socialism”
    • Claimed was based on a scientific study of history.
  • Forced to leave his home town due to his radical beliefs.
  • Lived in Paris, then settled in London
  • Marx & Engles wrote The Communist Manifesto.
  • Communism
    • Form of socialism that sees class struggle between employers and employees as unavoidable.
  • Marxism
    • Theorized the driving force in history.
    • “the history of class of struggles” was between the “haves” and “have-nots”
    • “haves “ have always owned the means of production, controlling society and it’s wealth
    • In industrialized Europe, the “haves” were the bourgeoisie, while “have-nots” were the proletariat, or the working class.
    • Modern class struggle pitted the bourgeoisie against the proletariat.
    • He predicted in the end that the proletariat would be triumphant, then would take control of means of production, and set up a communist society.
    • He despised capitalism (prosperity for few, and poverty for many).
    • Popular at first, but were never practiced exactly how he thought.
  • People felt closer to their countries ties, rather than to the international communist movement.
    • Due to the flaws, and failures in Marx’s theories.
    • Many people found Adam Smiths ideas more lasting in value than those of Karl Marx.